Tuesday July 30, 2024

• Grains re-test lows this morning as US crop ratings remain strong and the weather forecast is beneficial
  • CBOT futures are searching for a value that secures additional export demand amid record large US corn and soybean yield potential
• Crop Conditions were expected to decline across the corn belt this week.  Surprising the trade, corn increased by 1 point to 68% G/E
  • Soybeans were down 1 point, resting at 67% G/E, meeting trade expectations
  • Both soybeans and corn posted their strongest ratings this week since 2020
• US winter wheat harvest is ahead of schedule, the crop is 82% harvested compared to 76% the week prior 
• Parts of the corn belt saw 1-2 inches of beneficial rain 
• Export Inspections met the trade expectations across the board today with corn falling right at the high end of expectations at 41.7MBU and Mexico was the top destination
  • Soybean exports were seen at 14.8 MBUS this week, the biggest week we have seen since the since the beginning of May, again Mexico was the top destination for US beans
  • Wheat inspections fell mid-range at 15.8 MBU, shipment progress is now running in line with the needed pace
• A surge in Brazilian farmer selling softened basis enough to again make Brazil soybeans cheaper than US supplies over the past week
• Argentina’s wheat crop may be in danger with recent freezing temperatures and drought.